RBI's liquidity test may set future course

The Reserve Bank of India is currently grappling with a notable liquidity dilemma due to a surge in FCNR(B) scheme inflows. To navigate this, a pivotal variable rate reverse repo auction is set to influence the liquidity management strategy. The central bank may also utilize measures such as dollar swaps and bond sales.

Leave a Comment

Leave a Reply

Your email address will not be published. Required fields are marked *